Markets in the Asian domain have witnessed immense selling pressure despite upbeat earnings reported by United States technology stocks on Tuesday. Microsoft and Google outperformed street’ estimates despite higher interest rates from the Federal Reserve (Fed). However, renewed banking jitters inspired by weak quarterly performance from First Republic Bank spoiled the market mood.

At the press time, Japan’s Nikkei 225 tumbled 0.77%, Shanghai dropped 0.23%, Hang Seng gains 0.64%, and Nifty50 eased 0.03%.

The US Dollar Index (DXY) has delivered a breakdown of the consolidation formed in a narrow range above 101.80 in the Asian session. The USD Index is in a further correction mode as investors don’t seem anxious ahead of the United States Durable Goods Orders data.

Japanese stocks have dropped sharply despite chances of continuation of ultra-dovish monetary policy by the Bank of Japan (BoJ). New BoJ Governor Kazuo Ueda has no other option than to continue the expansionary monetary policy to keep inflation steadily above 2% by creating domestic demand.

In the Asia Pacific region, Australian inflation softened sharply but remained marginally higher than estimates. Australian inflation is consistently declining and is expected to support the Reserve Bank of Australia (RBA) for the continuation of a steady interest rate policy.

On the oil front, oil prices have stretched their recovery above $77.50 ahead of the oil inventory data to be reported by US Energy Information Administration (EIA) for the week ending April 21.